Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources. The margin, turnover, and return on investment (ROI) of the Division.

Question

Want to see the full answer?

Answer 1

Question

Chapter 11, Problem 21P

1.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) of the Division.

2.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) of the new product line.

3.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) for the next year.

4.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

Whether the new project line should be accepted or rejected.

5.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The reason why Company D wants Division O to accept this investment opportunity.

6.

To determine

Residual income: A business performance measurement that takes into account the minimum required return on the asset employed is a residual income, which the company expects from the asset in which the investment has been made. In the other words, residual income is the amount of excess earnings earned over and above the minimum required return of the capital invested.

a. The residual income of the current year.

b. The residual income of the new product line.

c. The residual income for the next year.

d. The new product line will probably accept or reject if performance is being measured by Residual Income.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Problem 10-18 (Algo) Return on Investment (ROI) and Residual Income [LO10-1, LO10-2] “I know headquarters wants us to add that new product line,” said Dell Havasi, manager of Billings Company’s Office Products Division. “But I want to see the numbers before I make any move. Our division’s return on investment (ROI) has led the company for three years, and I don’t want any letdown.” Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company’s Office Products Division for this year are given below: Sales $ 21,600,000 Variable expenses 13,622,600 Contribution margin 7,977,400 Fixed expenses 6,010,000 Net operating income $ 1,967,400 Divisional average operating assets $ 4,499,200 The company had an overall return on investment (ROI) of 17.00% this year (considering all divisions).…

Exercise 10-9 (Algo) Return on Investment (ROI) and Residual Income Relations [LO10-1, LO10-2] A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Loss amounts should be Indicated by a minus sign. Do not round your Intermediate calculations.) Sales Net operating income Average operating assets Return on investment (ROI) Minimum required rate of return: Percentage Dollar amount Residual income Company A Company B Company C $ 450,000 $ 650,000 $ 610,000 $ 44,000 $ 166,000 24 % $ 155,000 19 % % 13 % % 10 % $ 51,000 $ 7,000

*COULD YOU ANSWER PARTS 6A-6C* “I know headquarters wants us to add that new product line,” said Dell Havasi, manager of Billings Company’s Office Products Division. “But I want to see the numbers before I make any move. Our division’s return on investment (ROI) has led the company for three years, and I don’t want any letdown.” Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company’s Office Products Division for this year are given below: Sales $ 22,700,000 Variable expenses 14,363,700 Contribution margin 8,336,300 Fixed expenses 6,175,000 Net operating income $ 2,161,300 Divisional average operating assets $ 5,675,000 The company had an overall return on investment (ROI) of 16.00% this year (considering all divisions). Next year the Office Products Division…

Answer 2

Question

Chapter 11, Problem 21P

1.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) of the Division.

2.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) of the new product line.

3.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) for the next year.

4.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

Whether the new project line should be accepted or rejected.

5.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The reason why Company D wants Division O to accept this investment opportunity.

6.

To determine

Residual income: A business performance measurement that takes into account the minimum required return on the asset employed is a residual income, which the company expects from the asset in which the investment has been made. In the other words, residual income is the amount of excess earnings earned over and above the minimum required return of the capital invested.

a. The residual income of the current year.

b. The residual income of the new product line.

c. The residual income for the next year.

d. The new product line will probably accept or reject if performance is being measured by Residual Income.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 11, Problem 21P

1.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) of the Division.

2.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) of the new product line.

3.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) for the next year.

4.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

Whether the new project line should be accepted or rejected.

5.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The reason why Company D wants Division O to accept this investment opportunity.

6.

To determine

Residual income: A business performance measurement that takes into account the minimum required return on the asset employed is a residual income, which the company expects from the asset in which the investment has been made. In the other words, residual income is the amount of excess earnings earned over and above the minimum required return of the capital invested.

a. The residual income of the current year.

b. The residual income of the new product line.

c. The residual income for the next year.

d. The new product line will probably accept or reject if performance is being measured by Residual Income.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 11, Problem 21P

1.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) of the Division.

2.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) of the new product line.

3.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) for the next year.

4.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

Whether the new project line should be accepted or rejected.

5.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The reason why Company D wants Division O to accept this investment opportunity.

6.

To determine

Residual income: A business performance measurement that takes into account the minimum required return on the asset employed is a residual income, which the company expects from the asset in which the investment has been made. In the other words, residual income is the amount of excess earnings earned over and above the minimum required return of the capital invested.

a. The residual income of the current year.

b. The residual income of the new product line.

c. The residual income for the next year.

d. The new product line will probably accept or reject if performance is being measured by Residual Income.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 21P

1.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) of the Division.

2.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) of the new product line.

3.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) for the next year.

4.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

Whether the new project line should be accepted or rejected.

5.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The reason why Company D wants Division O to accept this investment opportunity.

6.

To determine

Residual income: A business performance measurement that takes into account the minimum required return on the asset employed is a residual income, which the company expects from the asset in which the investment has been made. In the other words, residual income is the amount of excess earnings earned over and above the minimum required return of the capital invested.

a. The residual income of the current year.

b. The residual income of the new product line.

c. The residual income for the next year.

d. The new product line will probably accept or reject if performance is being measured by Residual Income.

Answer 6

Chapter 11, Problem 21P

1.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) of the Division.

Answer 7

Chapter 11, Problem 21P

1.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) of the Division.

Answer 8

2.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) of the new product line.

Answer 9

2.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) of the new product line.

Answer 10

3.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) for the next year.

Answer 11

3.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The margin, turnover, and return on investment (ROI) for the next year.

Answer 12

4.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

Whether the new project line should be accepted or rejected.

Answer 13

4.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

Whether the new project line should be accepted or rejected.

Answer 14

5.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The reason why Company D wants Division O to accept this investment opportunity.

Answer 15

5.

To determine

Return on Investment or asset: It establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.

The reason why Company D wants Division O to accept this investment opportunity.

Answer 16

6.

To determine

Residual income: A business performance measurement that takes into account the minimum required return on the asset employed is a residual income, which the company expects from the asset in which the investment has been made. In the other words, residual income is the amount of excess earnings earned over and above the minimum required return of the capital invested.

a. The residual income of the current year.

b. The residual income of the new product line.

c. The residual income for the next year.

d. The new product line will probably accept or reject if performance is being measured by Residual Income.

Answer 17

6.

To determine

Residual income: A business performance measurement that takes into account the minimum required return on the asset employed is a residual income, which the company expects from the asset in which the investment has been made. In the other words, residual income is the amount of excess earnings earned over and above the minimum required return of the capital invested.

a. The residual income of the current year.

b. The residual income of the new product line.

c. The residual income for the next year.

d. The new product line will probably accept or reject if performance is being measured by Residual Income.

Answer 18

Expert Solution & Answer

Answer 19

Expert Solution & Answer

Answer 20

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 21

Ch. 11 - Prob. 1Q Ch. 11 - Prob. 2Q Ch. 11 - Prob. 3Q Ch. 11 - Prob. 4Q Ch. 11 - Prob. 5Q Ch. 11 - Prob. 6Q Ch. 11 - Prob. 7Q Ch. 11 - Prob. 8Q Ch. 11 - Prob. 9Q Ch. 11 - Prob. 10Q

Want to see the full answer?

Chapter 11 Solutions